The Tuvalu Trust Fund and International Aid
The Tuvalu Trust Fund (TTF) was established in 1987 by the United Kingdom, Australia, New Zealand. The TTF, a prudently managed overseas investment fund, has contributed roughly 11% of the annual government budget each year since 1990. With a capital value of about 2.5 times GDP, the TTF provides an important cushion for Tuvalu's volatile income sources from fishing and royalties from the sale of the dot-TV domain. With an initial capital of about A$27 million at independence, it now totals about A$100 million.
Australia and New Zealand continue to contribute capital to the Tuvalu Trust Fund and provide other forms of development assistance. The US government is also a major revenue source for Tuvalu, with 1999 payments from the South Pacific Tuna Treaty (SPTT) at about $9 million, a total which is expected to rise annually. The SPTT entered into force in 1988 with the current SPTT agreement expiring on June 14, 2013.
Financial support to Tuvalu is also provided by Japan, South Korea and the European Union.
Tuvalu joined the Asian Development Bank (ADB) in 1993. To improve aid effectiveness, the government of Tuvalu, ADB, AusAID, and NZAID signed the Development Partners Declaration (DPD) in 2009. The DPD is designed to improve aid effectiveness, both in the implementation of specific projects and in assisting the Tuvaluan government achieve performance benchmark indicators.
In 1999 the ADB and the government of Tuvalu set up the Falekaupule Trust Fund, which is intended to improve services on the outer islands. The island councils - composed of traditional leaders - are responsible for managing their own finances from a budget allocated from the Tuvaluan government from the Falekaupule Trust Fund. Under the Falekaupule Act, Falekaupule means “traditional assembly in each island...composed in accordance with the Aganu of each island”. Aganu means traditional custom and culture. The initial capital of Falekaupule Trust Fund was A$12m and at the end of 2009 the market value of the Falekaupule Trust Fund was approximately A$25 million.
Tuvalu became a member of the International Monetary Fund (IMF) in July 2010.
Tuvalu participates in the Enhanced Integrated Framework for Trade-Related Technical Assistance to Least Developed Countries (EIF), which was established in October 1997 under the auspices of the World Trade Organisation.
Read more about this topic: Economy Of Tuvalu
Famous quotes containing the words trust, fund and/or aid:
“He will calmly front the morrow in the negligency of that trust which carries God with it, and so hath already the whole future in the bottom of the heart.”
—Ralph Waldo Emerson (1803–1882)
“I am advised that there is an unexpended balance of about $45,000 of the fund appropriated for the relief of the sufferers by flood upon the Mississippi River and its tributaries, and I recommend that authority be given to use this fund to meet the most urgent necessities of the poorer people in Oklahoma.”
—Benjamin Harrison (1833–1901)
“Man is endogenous, and education is his unfolding. The aid we have from others is mechanical, compared with the discoveries of nature in us. What is thus learned is delightful in the doing, and the effect remains.”
—Ralph Waldo Emerson (1803–1882)